9 things first time home buyers need to know
As a first time home buyer, you would face lot of challenges during scouting for a home at your budget, in your favourite location and most importantly the home which is liked by all the family members. Find below 9 things you need to know as a first time home buyer.
- Advantages are enormous for the first time home buyers, especially those in the age group of 25-30 years, as they have to pay lesser EMI. The purchase also gives tax benefits apart from being an ideal investment.
- The first time home buyers are eligible for up to 30 years loan – thereby reducing the EMI and the banks are more flexible in offering better terms considering their age profile as well as first time home purchase.
- It offers great tax benefits under Section 24 and enhanced investment value.
- The first time home buyers planning to buy a home for their own use should look at homes closer to their work place, social and educational infrastructure and accessible by public transport.
- Those buying a home for investment purpose should look at apartments in high job-centric locations with proper connectivity through rail and road. Educational and social infrastructure like schools and hospitals in the vicinity should be kept in mind. It will yield high rental value to pay part of your EMI. A classic example in Chennai would be Siruseri IT Park – OMR or Mahindra World City – GST.
- First time home buyers should also be vigilant and purchase projects approved by top public/ private banks and should seek proper legal advice to go through the property title and other documentations like sale deed, construction agreement and association bye-laws.
- They should choose builders with high financial credibility preferably with CRISIL rating, good track record and sound management policies. They should talk to the CEO or the top management of the company to understand the vision and core values of the company. They should also understand the design element, construction methodology and project management schedule before making their decision.
- First time home buyers should always consider 5-10 years horizon when making a purchase and choose the product accordingly. For own use – it is recommended to buy a regular 2 BHK / 3BHK and for investment purpose may be a compact 2 BHK or 1.5 BHK that will generate higher rental yield.
- The typical young target group should compulsorily invest in a home as a part of their investment portfolio for better future.
The author, Mr.Ranjeeth Rathod is the Managing Director of DRA Group, a builder from Bangalore with an immaculate 32-year reputation for completing 7000 residences. DRA Group has residential projects worth Rs.1500 crores under execution in Bangalore and Chennai
(DRA Chennai and Bangalore corporate office address)